Agenda Packets - 1996/01/22 - Laserfiche WebLink

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COTT OF Agenda Section: 1 1 A REQUEST FOR COUNCIL CONSIDERATION Report Number:9h-1 5R4(' 111110;p8Report Date: 1—l R-9 6STAFF REPORT Council Action: •A, Mn7, ❑ Special Order of Business g'°-I•Partnet��Q ❑ Public Hearings 110 CITY COUNCIL MEETING DATE January 22, 1996 g ❑ Consent Agenda C Council Business Item Description: Initiating Process for the Sale of the City's Taxable General Obligation Tax Increment Refunding Bonds Administrator's Review/Recommendation: Lf�� - No comments to supplement this report �'i/ - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) SUMMARY: Attached please find recommendations for the sale of refunding bonds for Springsted, Inc., the City's financial advisors. Springsted recommends the sale and issuance of$2,750,000 Taxable General Obligation Tax Increment Bonds, Series 1996A to refund the City's $2,510,000 Taxable General Obligation Tax Increment Bonds, Series 1989A& 1989C. Based upon current market conditions Springsted estimates that the City will realize a savings of$215,612.67 as a consequence of the difference in interest rates between the two issues; 6.335%vs. 9.602%. • Springsted further recommends the sale and issuance of$810,000 General Obligation Tax Increment Bonds, Series 1996B to refund the City's $760,000 General Obligation Tax Increment Bonds, Series 1989B. Based upon current market conditions Springsted estimates that the City will realize a savings of $41,675.98 as a consequence of the difference in interest rates between the two issues; 4,578% vs. 6.729%. The bond sale is scheduled to take place on February 12, 1996. This schedule precludes waiting for the February Work Session to initiate the process needed for a bond sale. Ron Langess, will present the recommendations from Springsted, Inc., at the Council Meeting, January 22, 1996. James O'Meara, the City's bond attorney, has been contacted by Bob Thistle and is preparing the resolutions which authorize the sale of these two refunding bonds. The resolutions will be presented for your consideration and authorization on February 5, 1996. ' J / / / / '-_? L 6 ' ,:=-ter- GGL C.! ;,G- Mary E.Tatarek, Interim Finance Coordinator COMMENDATION;